Second only to China in the world’s clothing export markets, Bangladesh focuses on efficiency in its textile factories to defend its market in the face of increased competition from Cambodia, Vietnam, Myanmar, and some African countries.

Automation helps Bangladesh modernize apparel factories, with two workers able to do the work of 15. These improvements help offset increasing costs, as the government mandates a 51% wage hike, and Western brands demand better fire and safety standards in the factories.

1. How does the cost of production in Bangladesh compare to that of other countries, and how does it impact the viability of its apparel industry?

Guidance: Currently, labor costs in Bangladesh remain low by global standards, with an average monthly wage of $101, compared to $518 in China. However, some African countries like Ethiopia have average Continue reading →

Trash piles up around the world as China’s 2018 “National Sword” policy cuts off global recycling at the knees.

It used to be that ships bringing Chinese goods to the U.S. returned home full of our recyclables, feeding a lucrative industry in China. However, corruption, abuses, and environmental pollution in China led the government there to put the brakes on this industry beginning this year.

Whereas China and Hong Kong bought 60 percent of the G7’s plastic waste in the first half of 2017, that figure decreased to 10 percent in the first half of 2018. Bales of plastic that U.S. recyclers used to sell for $20 per ton now cost cities $10 per ton for disposal.

While China will still accept some cardboard, plastic, glass, and scrap metal, it can only have an impurity level of 0.5 percent, a standard most U.S. recyclers cannot achieve. Recyclers, governments, and consumers around the world are being forced to rethink their use of plastics, paper waste, and e-waste.

Do you love traveling but hate carrying luggage? There might be a new product that is just right for you. Unbound Merino is a line of travel clothes (t-shirts, hoodies, underwear, and socks) that can be worn for days, even weeks without washing.

Sound far-fetched? Apparently, the merino wool apparel claimed to repel odor and sweat is very popular among Silicon Valley professionals.

1. What external factors created opportunities for the development of this clothing line? Do you foresee external threats in the near future?

Guidance: Review the external factors typically involved in a SWOT analysis. A strong economy (the clothes are rather pricey), existing technology in product components and processes, a lack of competition in everyday merino wool clothing, and growth in international travel created opportunities for Unbound Merino’s business.